Abstract
This document tries to answer the four following questions: What are the short run demands for labor differences between competitive output markets and less-then competitive (i.e. monopoly power) output markets? Why is labor demand more elastic if the share of labor in total costs is greater? What does Substitution Hypothesis suggest about the causes of declining union membership? Within the discrimination context, does employee discrimination lead to a wage differential among the workers in the segregated workforce? Explain why?
